Market Report 24.10.2025

What happened this week

After a brief uptick in market activity from Asia last week, conditions calmed down again noticeably this week. This development should not surprise anyone who looks at the leather business with a realistic view. Regardless of which reports one reads, whom one speaks to, or which sector one examines, the number of companies reporting a lack of orders continues to rise daily. This would be less concerning if the calendar did not already show the end of October – a point in time when the leather industry typically has a clear outlook for the winter season, which is usually the stronger production period of the year, apart from breaks around Christmas and the Chinese New Year. Yet, this is normally the phase when tanneries are running at full capacity – and must be. At present, however, there is hardly a production region or segment where underutilization and order shortages are not being reported. Even if precise figures are lacking and much is based on estimates or sentiment, it seems fair to assume that at least 20 % to 40 % of production capacity across most sectors and markets remains unused. The optimists still expect improvement and interpret the situation as a temporary delay due to general uncertainty – not as a sign that orders may never return. That may be true, but for now, order volumes clearly do not cover the available raw material supply. As a result, the industry must gradually but inevitably adapt to new conditions and trade flows for hides and skins. As long as meat continues to be produced naturally, the by-product hide must also be utilized – and that will remain the case. Other regions are already further ahead in this respect than Europe, for various reasons. Meanwhile, the EU Commission’s new proposals regarding the implementation of the EUDR once again triggered heated debate – yet another example that expertise and EU bureaucracy often fail to align. Once the bureaucratic machinery starts turning, it becomes nearly impossible to stop, and the focus shifts to principles and maintaining positions rather than practical solutions. The option to simply halt a well-intentioned but misguided approach is rarely on the table. We will see whether the EU Parliament, as a last instance, intervenes. Sales activity in the hide market was fairly limited this week. With Asia remaining quiet and no new contract programs concluded in Europe, trading was confined to occasional spot deals – either particularly cheap, highly specific, or special in nature. None of these transactions, however, reflect the broader market situation. Prices remain largely stable, though there is currently little reliable data for a serious overall market assessment.